Rent Increase

Rent increase under Saudi law is raising the rent value agreed upon in an active contract — occurring in specific cases: at contract renewal after original period expiration, mid-period if an explicit clause allows it, or by mutual agreement amending the contract via Ejar. Unlike some countries, **no statutory cap exists on increases** in Saudi Arabia; the matter is left to contractual freedom and market logic. But the prevailing trend: natural increases of 3-10% annually for residential, and 5-15% for commercial, depending on area and market condition. Excessive increases (50%+ for example) may be deemed arbitrary in rare cases and judicially canceled. Any mid-contract increase requires explicit lessee approval and documentation as an amendment in Ejar. Renewal increase happens with notice before specified period (usually 60 days) and gives the lessee a chance to accept the increase or refuse and not renew. The lessor has no right to raise rent implicitly or retroactively, and any increase not documented in Ejar is invalid.